Uranium to Trade in $40/lb to $60/lb Range for 2 Years-Analyst
Source: Mining Weekly, Jade Davenport (2/3/10)
"100 nuclear power plants planned for construction. . .further 270 had been proposed for construction."
The uranium spot price enjoyed a strong rally between 2003 and 2007, rising from about $10/lb to more than $130/lb, before retreating to $45/lb in October of 2008, as the global financial meltdown took hold.
During 2009, the uranium price traded sideways, averaging around $46/lb.
However, 2010 held some promise of a modest recovery, as utilities - especially from Asia, where nuclear-energy programs were on the rise—came back into the market.
The expansion of nuclear power in countries such as Korea and the UAE would also increase demand for uranium and spur investment in uranium companies.
Clark noted that there were currently 437 nuclear power plants operational globally, with 56 under construction and 100 planned for construction.
A further 270 nuclear power plants had been proposed for construction.
For that reason, the price was expected to rise to between $55/lb and $65/lb in the longer term.